First STO Scam Revealed

North Dakota’s securities watchdog has issued a cease-and-desist order against a Russia-based security token offering that appeared to impersonate Liechtenstein-based Union Bank AG to promote “unregistered and potentially fraudulent securities.”

Claiming to be the “world’s first security token backed by a fully licensed bank” and offering a “stable coin that is fully backed by a fiat currency – the Swiss franc,” UBPC looked to be an attempt to defraud investors by basing its claims on a legitimate blockchainannouncement made in August by the regulated and licensed bank.

While the IP address for Union Bank’s website is located in Liechtenstein, UBPC’s is located in Russia and is registered to an individual, according to the statement.